A global selloff in semiconductor stocks has deepened, with memory chip makers bearing the brunt of the latest wave of selling driven by renewed concerns over the return on massive AI investments. The selloff has rippled from Wall Street to Asian markets, hitting major players hard.
The Philadelphia Semiconductor Index fell 6.03%. Among the hardest hit were SanDisk Corp. (SNDK), which plunged more than 16%, followed by Micron Technology dropping 10.90%, Marvell Technology falling 10.39%, and Advanced Micro Devices declining 9.41%. NVIDIA (NVDA) shares also fell 1.41%, while TSMC lost 3.98%, Broadcom slipped 2.46%, SK Hynix dropped 9.54%, Qualcomm fell 3.08%, Western Digital sank 14.37%, and Seagate Technology declined 13.20%. A key trigger for the latest panic is a massive options trade involving NVIDIA, with a notional value exceeding $750 billion, which has exacerbated fears that AI demand is being artificially inflated. This selloff arrives during a 'Super Central Bank Week' overlapping with a tech earnings season. The Federal Reserve, Bank of Japan, and Bank of England are all set to meet, while mega-cap tech firms like Microsoft, Meta, Apple, and Amazon are scheduled to report results.
H1 Net Profit Forecasts Soar by up to 35 Times; Several Companies Report Strong Growth
On the evening of July 28, several listed companies released their semi-annual reports or performance forecasts, showing significant net profit growth. Zhonghong Medical expects its net profit attributable to shareholders for the first half of 2026 to be between 140 million yuan and 210 million yuan, a year-on-year increase of 2338%–3557%. Net profit after deducting non-recurring gains and losses is forecast to be between 99 million yuan and 148 million yuan, turning a profit from a loss. Kingsoft Office expects to achieve operating revenue of 3.214 billion yuan to 3.413 billion yuan in the first half of 2026, a year-on-year increase of 20.95% to 28.43%. Net profit attributable to the parent company is forecast to be between 2.316 billion yuan and 2.719 billion yuan, a year-on-year increase of 209.98% to 263.89%. Separately, Liliang Diamond achieved operating revenue of 438 million yuan in the first half of this year, a year-on-year increase of 80.94%, with net profit attributable to the parent company reaching 90.0816 million yuan, a year-on-year increase of 247.61%.
Ministry of Commerce Responds to US Section 301 Investigation on Capacity Issues
Regarding the recent US launch of a Section 301 investigation into capacity issues, Lin Weilong, Director of the Policy Research Office of the Ministry of Commerce, stated at a press conference on the 28th that this is a typical act of unilateralism that seriously undermines the international economic order. The US cannot narrowly define production capacity that exceeds domestic demand as "overcapacity" and label it as such. The US has no right to unilaterally determine whether a trading partner has "overcapacity" through a Section 301 investigation and take unilateral restrictive measures. China urges the US to correct its wrongdoings and return to the correct path of resolving issues through dialogue and consultation. China will closely monitor developments and reserves the right to take necessary measures to resolutely defend its legitimate rights and interests.
ChangXin Memory Technologies to be Added to MSCI China All Shares Index, Effective August 10
On July 28, MSCI Inc. announced that ChangXin Memory Technologies will be included in the MSCI China All Shares Index, effective from August 10. According to MSCI's index construction rules, large IPOs can qualify for fast-track index inclusion when certain conditions are met. The MSCI China All Shares Index covers Chinese stocks listed on multiple markets, including A-shares, H-shares, and American Depositary Receipts (ADRs). The MSCI China Index is nested within the MSCI Global Standard Index series, so a stock's inclusion in the MSCI China Index implies greater tracking and allocation by passive funds. Analysts suggest that it is a certainty that ChangXin Memory Technologies will subsequently be included in indices like the STAR 50 and STAR Composite Index, with the only variable being the timing of the inclusion.
Memory Trio Earnings this Week: Can Strong Results Save Halved Share Prices?
This week, three major memory manufacturers from Japan and South Korea – SK Hynix, Samsung Electronics, and Japan's Kioxia – are set to report their latest quarterly results. Global memory stocks have recently experienced a significant selloff, with shares of SK Hynix and Kioxia nearly halving from their previous highs. Against this backdrop, the ability of these three memory giants' earnings to turn the tide and restore investor confidence will be closely watched. SK Hynix will be the first to report. As the leading company in the HBM market, SK Hynix plans to announce its second-quarter results on the morning of Wednesday, July 29 (local time). Amid the current collective rise in DRAM and NAND flash memory prices, South Korean brokerages estimate that SK Hynix's second-quarter revenue will reach 84.1 trillion won, with operating profit of 64.1 trillion won, compared to an operating profit of 37.6 trillion won in the previous quarter.
Exchange Moves to Curb Speed Advantage of Quantitative Private Funds
Recently, news emerged that the method of accessing trading quotes within exchange computer rooms would change, sparking widespread attention across A-share markets. The news indicated that the method for accessing trading quotes within exchange computer rooms would be uniformly changed to a wide area network (WAN) connection, with the original local area network (LAN) trading lines scheduled to be permanently closed on the evening of July 31, 2026. In response, some brokerages have confirmed receiving documents from the exchange. The "Technical Requirements for WAN Trading Quotation Lines" states that the two-way latency for units accessing the exchange's WAN lines for trading and quotes must not be lower than 2 milliseconds, including both existing and new lines. Closing the LAN trading lines means eliminating the privilege of direct local network access to quotes within the same computer room. By unifying the standard for WAN dedicated lines, the move aims to level the playing field in speed and technological advantage between quantitative private funds and retail investors.
Central Bank: Consumer Loans Excluding Housing Loans Decreased by 1.7% YoY at End of Q2
On July 28, the People's Bank of China released the statistical report on financial institution loan distribution for the second quarter of 2026. As of the end of the second quarter of 2026, the balance of domestic and foreign currency household loans was 82.91 trillion yuan, down 1.3% year-on-year, with a decrease of 367.4 billion yuan in the first half of the year. Among these, the balance of operating loans was 25.79 trillion yuan, up 2.8% year-on-year, with an increase of 688.9 billion yuan in the first half. The balance of consumer loans excluding personal housing loans was 20.83 trillion yuan, down 1.7% year-on-year, with a decrease of 340 billion yuan in the first half.
2026 Summer Box Office Exceeds 6 Billion Yuan
According to Maoyan Professional Edition data, as of 3:00 PM on July 28, the total box office for the 2026 summer movie season (June 1 - August 31) has exceeded 6 billion yuan. Films like Kung Fu Women's Football, Eight Immortals!, and Love Letter to Grandma rank among the top three in the summer box office. Wanlian Securities noted that Kung Fu Women's Football, directed by Stephen Chow, serves as the core driving film, fully leveraging the market-rescuing effect of a major blockbuster. Relying on a national-level director's IP and a differentiated theme of kung fu plus sports comedy, it has accurately targeted audience demand across all ages. Since its release, its scheduling, attendance rate, and daily box office have consistently led the season, driving a significant sequential increase in the overall market. The overall summer box office has ample elasticity, benefiting distributors and producers holding major blockbuster films. Meanwhile, the cinema chain sector is expected to benefit from market recovery, with potential for continued restoration of screen output.
Other sectors worth noting include Shipping and Coal. Shanghai has announced plans to strengthen its waterway network and optimize the structure of high-grade waterways. Shanxi Coking Coal has announced the suspension of production at three mines, which have a combined annual approved capacity of 8.2 million tons.
In terms of positive announcements, China State Construction Engineering Corp Ltd (China Construction) signed a contract for a major overseas project in Kuwait, the North Kabd Sewage Treatment Plant and supporting facilities, with a contract value of approximately 22.4 billion yuan. BOE Technology Group Co Ltd (BOE A) announced that its controlling shareholder, Beijing Electronics Holdings, plans to increase its holdings of the company's A-shares by 500 million to 1 billion yuan. Guocheng Mining plans to repurchase company shares for 300 million to 600 million yuan. Kedali plans to repurchase shares for 150 million to 300 million yuan. Shuangyuan Technology plans to repurchase company shares for 50 million to 80 million yuan.
On the negative side, Jinhaitong reported that a shareholder holding more than 5% of shares, Xunuo Investment, reduced its holdings by 1.2792 million shares from July 24 to July 27. Hongbaoli reported that the reduction plan for its largest shareholder and actual controller has expired, with a combined reduction of 1.36% of shares. Hainan Huatie was fined 3 million yuan for failing to disclose material progress on a computing power service agreement in a timely manner. Shanxi Coking Coal has suspended production at some mines due to expired licenses and is currently handling the extension procedures. Yasheng Group has experienced impacts on its production and operations due to rainstorm disasters.
Kingsoft Office expects its net profit for the first half of the year to be between 2.316 billion yuan and 2.719 billion yuan, a year-on-year increase of 209.98% to 263.89%.
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